Recent Transformation of the U.S. Economy

Since the late 2010, the U.S. has shown signs, albeit weakly, of reviving its manufacturing industry and innovation ecosystem. This chapter examines to what extent the recent U.S. revival policy differs from its traditional neoliberal free-market model, and how and why the U.S. can transform its economic policy. Against the background of the decline of U.S. industries in the course of uncoordinated finance-led offshoring, the U.S. has shifted from traditional neoliberalism to state-led industrial development, while neoliberalism is losing its grip on the U.S. public mind. Three main alternatives to neoliberalism, including New Progressivism, Conservative Populism, and National Developmentalism, share common interests in the state’s active developmental role to revive U.S. industries, despite differences in their policy priorities. Due to their efforts, societywide support for industrial policy has spread.